Virgin Blue worth less than a B777
Thread Starter
Join Date: Feb 2002
Location: Sydney, Australia
Posts: 590
Likes: 0
Received 0 Likes
on
0 Posts
Virgin Blue worth less than a B777
Join Date: Apr 2000
Location: Europe
Posts: 5
Likes: 0
Received 0 Likes
on
0 Posts
VB should have stayed as a niche domestic carrier and left the long haul operations to established players. Even at this late stage it would not be too late to close down V oz and wear the losses, this probably being preferable to operating half full 777's across the Pacific. It doesn't take Einstein to work out how long it would take to deplete 600 mil of cash reserves (if that is what is still left). Wrong time, wrong place, bite off more than you can chew etc. Time will tell but I am sure most shareholders would be very nervous with the decisions coming out of Brissy. I hope I am wrong but like they say, the writing is on the wall.
Join Date: Jan 2009
Location: sydney
Posts: 81
Likes: 0
Received 0 Likes
on
0 Posts
Branson seemed more interested in flogging his upcoming health & fitness venture in Oz.
As he insultingly puts it, we here in Oz can't run these ventures as well as he can.
His lack of interest in Virgin Blue was noticeable.
As he insultingly puts it, we here in Oz can't run these ventures as well as he can.
His lack of interest in Virgin Blue was noticeable.
Join Date: Oct 2000
Posts: 477
Likes: 0
Received 0 Likes
on
0 Posts
US Federal Reserve chief Ben Bernanke has warned Congress that without the right policies from the government, the US recession could last into 2010.
Maybe its time to speculate and buy a few VB shares?
Join Date: Aug 2007
Location: rice bowl
Posts: 113
Likes: 0
Received 0 Likes
on
0 Posts
How pollyannarish of you.
Remember Gary Toomey saying Ansett had $1BILL in cash six weeks before they went belly up. It's not the money it's the debt, bankers get very nervous about their exposure to debt laden companies.
Remember Gary Toomey saying Ansett had $1BILL in cash six weeks before they went belly up. It's not the money it's the debt, bankers get very nervous about their exposure to debt laden companies.
Crikey rescue 1!
The original projection for VA to turn a profit was 18 months. So I don't see how, based on their own forcast, they could become "the success story" untill at least some time after that. That of course was before the economic meltdown, and before the literal evaporation of the market they were pitching to. Now I'm just Joe Bloggs nobody, but I reckon DJ will be lucky to survive without the drain from VA.
I'm afraid that in 6-12 months VA, and hopefully not VB as well, will be just a memory.
The original projection for VA to turn a profit was 18 months. So I don't see how, based on their own forcast, they could become "the success story" untill at least some time after that. That of course was before the economic meltdown, and before the literal evaporation of the market they were pitching to. Now I'm just Joe Bloggs nobody, but I reckon DJ will be lucky to survive without the drain from VA.
I'm afraid that in 6-12 months VA, and hopefully not VB as well, will be just a memory.
Last edited by KRUSTY 34; 26th Feb 2009 at 20:42.
On the bright side it won't take much work in the paint shop to paint a rat on the tail of those 777's, remember there are still a few ex Ansett ships flying about with the rat 
Join Date: Jan 2004
Location: East Coast of Oz
Posts: 74
Likes: 0
Received 0 Likes
on
0 Posts
this probably being preferable to operating half full 777's across the Pacific
hmmmmmmmmmm, well somehow I dont think they will be half full.....who else takes you SYD - LAX return for $975 including taxes!!!!!!!!!!! that is the cheapest on there at the moment but they were going even cheaper before!
Join Date: Oct 1999
Location: Australia
Posts: 57
Likes: 0
Received 0 Likes
on
0 Posts
The problem is, curved approach, that even at these prices(which are great), people are NOT travelling at all. The projections from June for many airlines (including those such as Singair, as posted in the straits times-not rumour) are quite honestly AWFUL. Just because you can afford the airfare, doesn't mean you can afford the holiday! With jobs being lost in every industry left, right and centre, many are conserving their dough for the basics, not luxury items like holidays.
I wish VA crew all the best and every success.
I wish VA crew all the best and every success.
Join Date: Oct 2008
Location: Sydney
Posts: 76
Likes: 0
Received 0 Likes
on
0 Posts
bigger problem
Curved,
The bigger problem is that even if they fill the planes with $1000 return tickets, they will be losing truckloads of money on each sector as they won't even be covering the fuel costs.
Madness with shareholder money.
tsalta
The bigger problem is that even if they fill the planes with $1000 return tickets, they will be losing truckloads of money on each sector as they won't even be covering the fuel costs.
Madness with shareholder money.
tsalta
Join Date: Jun 2008
Location: Sydney
Posts: 49
Likes: 0
Received 0 Likes
on
0 Posts
Just working some very rough numbers as I don't fly a 777 or have access to V's fuel hedging, but say it takes 100,000KG of fuel SYD - LAX, at 0.8 that's 125,000L. At AU$1 per litre, divided by seats (350), that comes to just under AU$360.
$1000 return fares will mean minimum $720 just for fuel costs, and that's assuming 100% load factors and not taking into account the extra fuel required for LAX - SYD. These fares would just cover fuel and taxes.
Therefore don't expect these cheap fares as the norm. They're around to gain initial market share at the worst possible time against (soon to be) 4 major carriers.
On another note, nice to see the management spending big on a launch party only a week after 400 job losses were announced......nice touch!
$1000 return fares will mean minimum $720 just for fuel costs, and that's assuming 100% load factors and not taking into account the extra fuel required for LAX - SYD. These fares would just cover fuel and taxes.
Therefore don't expect these cheap fares as the norm. They're around to gain initial market share at the worst possible time against (soon to be) 4 major carriers.
On another note, nice to see the management spending big on a launch party only a week after 400 job losses were announced......nice touch!
Last edited by pylet; 27th Feb 2009 at 06:54.
Join Date: Jul 2007
Location: An old flying boat station on Moreton Bay
Age: 84
Posts: 292
Likes: 0
Received 0 Likes
on
0 Posts
Originally Posted by pylet
On another note, nice to see the management spending big on a launch party only a week after 400 job losses for announced......nice touch!
Historically the Aus-US market is flat February-March, but starts to pick up ex Aus during April, so the launch isn't too badly timed since the promotional fares aren't diluting otherwise high yield fares.
Overall though, there will be excess capacity, and therefore losses, from July.